Connect with us

Hi, what are you looking for?

Capital Business
Capital Business


CCK urged to review connectivity fees

NAIROBI, Kenya Feb 7 – The Communications Commission of Kenya (CCK) is being challenged to review and clearly define interconnection charges between mobile operators in an effort of stabilising the market.

Telkom Kenya Chief Executive Officer Mickael Ghossein said on Monday the regulator had failed to set termination rates between telephone service providers, leaving operators to implement their own rates.

Mr Ghossein said this had led to the current vicious price war in the telecoms market, which he says threatens to destroy the market.

"I am against it and if I could I will oppose it because.  I believe it kills the market. Today we see a big problem of sustainability of the business and we are starting to feel it," he said.

Interconnection charges are tariffs that telephone companies pay to other network providers for calls or SMS terminating outside their networks.

The Telkom boss said clearer definition of termination rates by the CCK rather than leaving it for operator interpretation would lead to a more competitive operating environment.

The CCK has been reviewing the interconnection charges, which is currently pegged at Sh2.21 with talk of lowering it further.

While the CCK appears to prefer market forces to determine prices, it has also attempted to guide market prices by offering recommended ceilings for service charges.

This has paved the way for some operators to fix lower prices in an effort of attracting customers. In January, Airtel Kenya introduced a Sh1 three-month promotion for its customers, way below the recommended Sh2.21.

Advertisement. Scroll to continue reading.

Mr Ghossein said the current price wars were hurting the company adding a number of costs saving measure would have to be adopted if the operator was to remain competitive.

"Today unfortunately, the sector is in bad shape and I think we are destroying the value of this market. I think the biggest impact will be felt by our employees if nothing is done to take care of the market," he said.

Follow the author at

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...